In 2023, following passage of the Donor Intent Protection Act in Kansas, Philanthropy Roundtable launched a monthly series on donor intent developments and controversies nationwide to better inform people about this important topic. The Donor Intent Protection Act has now passed in Kentucky, Georgia and Montana, and efforts to extend this legislation to other states will continue in 2026.
We encourage donors to contact us with questions about featured items and consult additional resources on donor intent at the Roundtable’s Donor Intent Hub. We also welcome news about donor intent we may have missed.
This month’s Donor Intent Watch begins with another story of a state university’s attempt to change the terms of a scholarship program with race-based donor restrictions – this time in North Carolina. It closes with the first segment of a series on protecting donor intent within your philanthropy.
When Donor Intent Clashes with University Rules on Race-Based Restrictions
The July Donor Intent Watch included a summary of the Iowa Supreme Court’s decision to temporarily block a motion from the Iowa attorney general and Iowa State University to change the terms of a scholarship program with race-based donor restrictions. Yahoo News reported on a comparable situation at the University of North Carolina Wilmington (UNCW).
The late Dr. Leroy Upperman was a Black physician who practiced in the Wilmington area. His community engagement included mentoring local students and doctors. In 1995 – one year before his death – his family funded a scholarship in his name at UNCW. The terms of the scholarship do not mandate the recipient be Black but do require “special consideration … be given to students who have demonstrated experience in or commitment to working with the African American community,” and “has typically gone to Black students.”
After the U.S. Supreme Court’s 2023 decision to disallow race-conscious admissions programs at Harvard and the University of North Carolina, many public and private universities began to examine academic and administrative programs which might be viewed as discriminatory. In 2024, the UNC System board of governors developed an “equality” policy which required the alteration or elimination of programs focused on Black or other minority students.
Upperman’s daughter, Linda Upperman Smith, is the administrator of the scholarship program at UNCW, and has publicly expressed her disappointment with the university’s decision to change its guidelines as well as her refusal to alter the language expressing the terms of the award. Instead, she has announced, “We will move the endowment to a university where it’s pretty likely that an African American student would get it based on the population. At this point we’re looking at Howard University.”
Read more here.
Protecting Donor Intent Within Your Foundation – No. 1 Hire Wisely
Your mission is only as strong as your people. Selecting the right trustees is critical. But ensuring staff are aligned with your mission is also crucial. Staff play a significant role in either honoring—or disregarding—your intent because they are on the front lines, meeting with potential grant recipients, interacting with the community and developing grant recommendations.
Every day, staff members make decisions, large and small, that will determine whether your organization fulfills its mission. Professional staff can exert more practical power than trustees or even donors if there is a passive approach to governance.
Connelly Foundation President Tom Riley has noted the importance of schooling new hires in a foundation’s values and principles, saying, “A big part of onboarding new staff members is a deliberate education in donor intent—not just the ‘what’ but the ‘why,’ the donors’ values and how they’ve been applied over the years.”
As a donor, you want to bring on staff who will enhance the effectiveness of your philanthropy. Yet you must also be alert to the ways in which staff can easily allow their own values and agendas to redirect the organization.
Choosing the person who will lead your foundation as executive director or CEO is the most crucial decision you will make. Wise donors frequently search for CEOs outside the world of foundations, choosing from people experienced with the donor’s work, favorite charities, and personality. No matter where your search leads you—even among friends and family—be diligent in making your decision. You may know an individual’s professional credentials but not his core values, her personal attributes but not her philosophy of private philanthropy.
No matter how eager you are to get your grantmaking off the ground, do not risk hiring a CEO who is not aligned with your beliefs and goals. Remember this will be the individual responsible for articulating your vision to others and managing the grantmaking to implement your mission. Your relationship with your CEO—like your relationship with your board— must be anchored in trust.
You and your foundation’s executive should take time to understand the philosophical underpinnings of each potential staff member. Pay particular attention to program staff who will play a significant role in your grantmaking but know your administrative staff as well. Do not assume administrative staff have little influence on office culture and practice.
And remember, your long-term goal is not to create a culture of fear. Instead, you want shared values, genuine care, and reverence for central principles. Look to build traditions and practices within your operations that create loyalty to your intentions among the people of your organization. Take care to cultivate your staff members over time.
Invest in their professional development and give them increased responsibility as they show a greater appreciation and understanding of your foundation’s mission. Long-term staff can provide the continuity needed to preserve a donor’s values when board or leadership changes.
Read more here.
